In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10%, deposits in Macroland equal ________ and the money supply equals ________.

Assume the economy is initially in equilibrium where potential GDP equals real GDP

If the expected inflation rate, the term structure effect, and the default-risk premium are constant and the Fed wants to lower the inflation rate, the Fed could ________ the target short-term nominal interest rate, which will result in real GDP being ________ potential GDP. A) increase; greater than B) increase; less than C) decrease; greater than D) decrease; less than

Tax laws treat all in-kind payments as taxable income to the employers

a. True b. False